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This excerpt taken from the HBI DEF 14A filed Mar 12, 2009. Other
Compensation
Plans and Arrangements. Our executive
officers, including our named executive officers, are eligible
to participate in certain employee benefits plans and
arrangements offered by our company. These include the 401(k)
Plan, the Hanesbrands Inc. Executive Deferred Compensation Plan,
or the Executive Deferred Compensation Plan, the Hanesbrands
Inc. Executive Life Insurance Plan, or the Life Insurance Plan,
and the Hanesbrands Inc. Executive Disability Plan. Under the
401(k) Plan, our executive officers and generally all full-time
domestic exempt and non-exempt salaried employees may contribute
a portion of their compensation to the plan on a pre-tax basis
and receive a matching employer contribution of up to a possible
maximum of 4% of their eligible compensation not in excess of
certain dollar limits mandated by the Internal Revenue Code
($230,000 for calendar year 2008). In addition, exempt and
non-exempt salaried employees are eligible to receive an
employer contribution of up to an additional 4% of their
eligible compensation. Under the Executive Deferred Compensation
Plan, a group of approximately 260 executives at the director
level and above, including our named executive officers, may
defer receipt of cash and equity compensation. We offer the
Executive Deferred Compensation Plan because programs of its
kind are offered by some of the Benchmark Companies, and because
we wanted to allow those of our executives who were
participating in a similar plan offered by Sara Lee prior to the
spin off to maintain a similar benefit after the spin off.
The Life Insurance Plan provides life insurance benefits to a
group of approximately 80 employees at the level of vice
president or above, including our named executive officers, who
contribute materially to the continued growth, development and
future business success of Hanesbrands. The Life Insurance Plan,
which includes both a death benefit and a cash value, provides
life insurance coverage during active employment in an amount
equal to three times annual base salary, and, depending on the
performance of investments in the plan, may offer continuing
coverage following retirement. The Life Insurance Plan also
provides executives
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with the opportunity to make voluntary, after-tax contributions
that may be allocated by the executive into a range of
investment options. The Hanesbrands Inc. Executive Disability
Plan provides long-term disability benefits for persons employed
by Hanesbrands and its subsidiaries as eligible executives. The
Hanesbrands Inc. Executive Disability Plan provides disability
coverage for a group of approximately 80 employees at the
level of vice president and above, including our named executive
officers. If an eligible employee becomes totally disabled, the
program will provide a monthly disability benefit equal to
1/12
of the sum of (i) 75% of the employee’s annual base
salary up to an amount not in excess of $500,000, and
(ii) 50% of the three-year average of the employee’s
annual short-term incentive bonus up to an amount not in excess
of $250,000. The maximum monthly disability benefit is $41,667
and is reduced by any disability benefits that an employee is
entitled to receive under Social Security, workers’
compensation, a state compulsory disability law or another plan
of Hanesbrands providing benefits for disability.
Perquisites. We offer limited perquisites to
our executive officers, including our named executive officers,
including an executive car allowance and company-paid medical
examinations.
This excerpt taken from the HBI DEF 14A filed Mar 10, 2008. Other
Compensation
Our executive officers, including our named executive officers,
are eligible to participate in certain employee benefits plans
and arrangements offered by our company. These include the
401(k) Plan, the SERP, the Hanesbrands Inc. Executive Deferred
Compensation Plan, or the “Executive Deferred Compensation
Plan,” the Hanesbrands Inc. Executive Life Insurance
Program and the Hanesbrands Inc. Executive Disability Program.
These plans and arrangements are described below.
Under the Executive Deferred Compensation Plan, a group of
approximately 270 executives at the director level and above,
including our named executive officers, may defer receipt of
cash and equity compensation. We offer the Executive Deferred
Compensation Plan because programs of its kind are offered by
some of the Benchmark Companies, and because we wanted to allow
those of our executives who were participating in a similar plan
offered by Sara Lee prior to the spin off to maintain a similar
benefit after the spin off.
In addition to allowing us to make full employer contributions
to employees whose compensation exceeds a threshold set by the
Internal Revenue Service as discussed above, the SERP also
provides benefits consisting of (i) those supplemental
retirement benefits that had been accrued under the Sara Lee
Corporation Supplemental Executive Retirement Plan as of
December 31, 2005 and (ii) transitional defined
contribution credits for one to five years and ranging from 4%
to 15% of eligible compensation for certain executives. These
transitional credits are being provided to a broad group of
executives in connection with our transition (prior to the spin
off) from providing both a defined benefit plan (as discussed
above, the Pension Plan is frozen) and a defined contribution
plan to providing only defined contribution plans, to mitigate
the negative impact of that transition. The determination of the
credits provided to an executive was based on the extent to
which such executive was negatively impacted by the transition,
including the executive’s age and years of service as of
January 1, 2006.
The Hanesbrands Inc. Executive Life Insurance Plan is designed
to provide life insurance benefits to a select group of
management or highly compensated employees who contribute
materially to the continued growth, development and future
business success of Hanesbrands. The Hanesbrands Inc. Executive
Life Insurance Plan provides life insurance coverage during
active employment for certain of our executives at the level of
vice president and above, including our named executive
officers, in an amount equal to three times their annual base
salary. We also offer continuing coverage following retirement
equal to such executive officer’s annual base salary
immediately prior to retirement. The Hanesbrands Inc. Executive
Disability Plan is designed to provide long-term disability
benefits for persons employed by its divisions and subsidiaries
as
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eligible executives. The Hanesbrands Inc. Executive Disability
Plan provides disability coverage for a group of approximately
90 employees at the level of vice president and above,
including our named executive officers. If an eligible employee
becomes totally disabled, the program will provide a monthly
disability benefit equal to
1/12
of the sum of (i) 75% of the employee’s annual base
salary up to an amount not in excess of $500,000, and
(ii) 50% of the three-year average of the employee’s
annual short-term incentive bonus up to an amount not in excess
of $250,000. The maximum monthly disability benefit is $41,667
and is reduced by any disability benefits that an employee is
entitled to receive under Social Security, workers’
compensation, a state compulsory disability law or another plan
of Hanesbrands providing benefits for disability.
Perquisites. We offer limited perquisites to
our executive officers, including our named executive officers,
and have eliminated or reduced many of the perquisites and
similar benefits that had been available to our executive
officers prior to the spin off. For example, we no longer pay
country club fees or provide reimbursement for financial
advisory services. In addition, we no longer provide our
executives with a company automobile for their use, but instead
provide a reduced benefit by providing an automobile allowance
program consisting of a payment to our executives of an amount
equal to 4% of their base salary. We established the automobile
allowance program because we believe it is necessary in light of
current market practice.
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